Pentagon denies brokers involvement in seeking defense investment before Iran conflict

US Department of Defense Demands Retraction of Report Alleging Broker’s Investment in Weapons Companies

The United States Department of Defense has issued a statement demanding the retraction of a report published by The Financial Times, which alleged that a broker for Defence Secretary Pete Hegseth attempted to make a large investment in weapons companies before the war on Iran. Pentagon spokesman Sean Parnell made the request on Monday.

According to The Financial Times, a wealth manager for Hegseth contacted BlackRock about making a multimillion-dollar investment in a defence-related fund in the weeks leading up to the war. However, it was reported that the investment did not proceed due to the fund’s holdings being unavailable at the time.

Parnell stated that “this allegation is entirely false and fabricated” and denied any involvement by Hegseth or his representatives with BlackRock regarding such an investment. He described the report as a “baseless, dishonest smear designed to mislead the public”.

The Defence Department has maintained its commitment to high ethical standards and adherence to applicable laws and regulations. The Financial Times report has not been independently confirmed, and neither the Defence Department nor Morgan Stanley have responded to inquiries at this time.

BlackRock declined to comment on the matter. The incident comes amid scrutiny of well-timed trades in financial markets that have raised questions about potential insider knowledge.

Source: Al Jazeera